Binance cryptocurrency platform says open for business, gets slap on wrist by watchdog

Binance cryptocurrency platform was reprimanded by the Ontario Securities Commission for telling users that it was allowed to continue operations in Canada when it still lacks a registration to do so. “This is unacceptable,” the OSC said in a statement on its website Thursday. “Binance has issued a notice to users, without any notification to the OSC.”

In a message to users, obtained by Bloomberg News, Binance said it “has been successful in taking its first steps on the regulatory path by registering in Canada” and that registration allows the company to continue its operations in Canada.

“As a result of ongoing and positive cooperation with Canadian regulators, there is no need for Ontario users to close their accounts by December 31, 2021,” the letter states.

The OSC said Binance had committed to ensuring no new transactions would be carried out on its platform after Dec. 31, but the correspondence to users rescinds that commitment.

“No entity in the Binance group of companies holds any form of securities registration in Ontario,” the OSC said. Six crypto trading platforms are currently registered in Ontario, after a warning in March of this year to register with the OSC.

In a response to questions, Binance said there was some miscommunication.

“We did not meet directly with the Ontario Securities Commission about our intentions, which was clearly an error that we are correcting. We will provide updated guidance to users as soon as possible.”

The OSC declined to comment further.

The six crypto platforms that already obtained their registrations with the OSC this year.